Joint stock company SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA. INTERIM STATEMENT for 6 months of 2011

Transcription

1 Joint stock company SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA INTERIM STATEMENT for 6 months of

2 Interim statement for6 months of Index of Contents Page Information on the Company 3 Interim Management Report 4 Profit or Loss Account 5 Balance sheet 6 Cash flow statement 8 Statement on changes in shareholders equity 9 10 Report on Management Liability 23 2

3 Interim statement for 6 months of Information on the Company Company s name Company s legal status Registration number, place and date Legal address Shareholders holding more than 5% of the total number of voting shares Members of the Board Members of the Council SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA Joint stock company , Riga, 26 July 1991 Registration in the Commercial Register on 19 June 2004 Kalnabeites 8, Sigulda parish, Sigulda area, LV-2150 SIA Siguldas mākslīgās apsēklošanas stacija (49.8%), registration No Nils Ivars Feodorovs, Chairman of the Board Sarmīte Arcimoviča, Member of the Board Valda Mālniece, Member of the Board Inita Bedrīte, Chairman of the Council Maija Beča, Deputy Chairman of the Council Ērika Everte, Member of the Council Solvita Arcimoviča, Member of the Council Renia Beķere, Member of the Council until Jekaterina Kreise, Member of the Council from Reporting year Auditors Anita Sondore Sworn Auditor Certificate No. 129 AUDITS A.S., SIA Pīlādži, Līgatne parish, Līgatne area, LV-4108, Latvia Sworn Auditors Commercial Company s license No. 27 3

4 Interim statement for 6 months of Interim Management Report The basic economic activity of the Stock Company has invariably been production and sale of bull semen, comprising 49% of its net turnover in the accounting period, and milk analysing and data processing services, comprising 34% of company s net turnover. There are no considerable changes in the proportion of company s basic activities in comparison to the first six months in. Company s net turnover in first half-year of reached 383 thousand (345 thousand ), representing an increase of 11% against corresponding period in. Company s profit of 27 thousand (39 thousand ) in is similar to the one in, which is due to 25% increase of material costs. The commercial profitability over the first six months in was 9%, compared to 10% in. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Board Member of the Board Member of the Board 24 August 4

5 Interim statement for 6 months of Profit or loss account for the period ended 30 June Note Net sales Changes in stock of ready-made goods and unfinished products Other operating income Costs of materials: ( ) ( ) ( ) ( ) a) raw materials and auxiliary costs of materials ( ) ( ) ( ) ( ) b) other external costs (33 633) (28 715) (47 855) (40 858) Personnel costs: 6 ( ) ( ) ( ) ( ) a) salaries for work ( ) ( ) ( ) ( ) b) state social insurance compulsory contributions (29 852) (30 968) (42 476) (44 063) c) other social insurance costs (7 407) (7 919) (10 539) (11 268) Write-off of assets and values: (19 930) (34 733) (28 358) (49 421) a) depreciation of fixed assets and amortization of intangible assets (19 930) (34 733) (28 358) (49 421) Other operating costs 7 (15 687) (15 136) (22 320) (21 536) Other interest income and similar income Interest payments and similar costs 9 (1 625) (2 428) (2 312) (3 455) Profit or losses before taxes Enterprise income tax for the reporting year (5 692) (6 250) (8 099) (8 893) Other taxes 10 (1 111) (1 107) (1 581) (1 575) The profit or loss for the year Equity per 1 share (EPS) Notes on pages 10 to 22 form an integral part of these financial statements. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Board Member of the Board Member of the Board 24 August 5

6 Interim statement for 6 months of Balance sheet as at 30 June Assets Long-term investments Note Intangible assets Concessions, patents, licenses, trade marks and similar rights Intangible assets total Fixed assets Land parcels, buildings and constructions and perennial plantings Equipment and machinery Other fixed assets and inventory Fixed assets total Investment properties Biological assets Long-term financial investments Investments in capital of associated companies Other securities and investments Long-term financial investments total Long-term investments total Current assets Stock Raw materials, basic materials and auxiliary materials Ready-made goods and goods for sale Prepayments for goods Stock total Receivables Trade receivables Other receivables Prepaid expenses Receivables total Short-term financial investments Other securities and shareholding in capitals Short-term financial investments total Cash Current assets total Assets total

7 Interim statement for 6 months of Balance sheet as at 30 June Shareholders equity and liabilities Note Shareholders equity Share capital Retained earnings: Retained earnings carried forward from previous years Retained earnings of the reporting year Shareholders equity total Payables Long-term payables Deferred tax liabilities Long-term payables total Short-term payables Prepayment received from customers Trade payables Taxes and social insurance payments Other payables Accrued liabilities Short-term payables total Payables total Shareholders equity and liabilities total Notes on pages 10 to 22 form an integral part of these financial statements. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Board Member of the Board Member of the Board 24 August 7

8 Interim statement for 6 months of Cash flow statement for the period ended 30 June Note Cash flow from operating activities Income from sale of goods and provision of services Payments to suppliers, employees, other expenses arising from basic operations ( ) ( ) ( ) ( ) Other Company s basic income or expenses Gross cash flow from basic operations Expenses for tax payments (8 151) (6 407) (11 598) (9 116) Net cash flow from operating activities (250) (2 491) (355) (3 545) Cash flow from investing activities Purchase of fixed assets and intangible investments (13 145) (4 557) (18 703) (6 484) Purchase of capital shares of other company - (39 521) - (56 233) Net cash flow from investing activities (13 145) (44 078) (18 703) (62 717) Cash flow from financing activities Dividends paid (38 020) (33 795) (54 098) (48 086) Net cash flow from financing activities (38 020) (33 795) (54 098) (48 086) Result of foreign exchange rate fluctuations (906) (210) (1 289) (299) Increase/ decrease of cash and its equivalents (52 321) (80 574) (74 445) ( ) Cash and its equivalents at the beginning of the period Cash and its equivalents at the end of the period Notes on pages 10 to 22 form an integral part of these financial statements. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Board Member of the Board Member of the Board 24 August 8

9 Interim statement for 6 months of Statement on changes in shareholders equity for the period ending 30 June Share capital Retained earnings Retained earnings for the reporting year Shareholders equity total Profit for 2009 transferred to retained earnings of previous years ( ) - Dividends for (33 795) - (33 795) Retained earnings for the reporting year Profit for transferred to retained earnings of previous years (34 552) - Dividends for - (38 020) - (38 020) Retained earnings for the reporting year Share capital Retained earnings Retained earnings for the reporting year Shareholders equity total Profit for 2009 transferred to retained earnings of previous years ( ) - Dividends for (48 086) - (48 086) Retained earnings for the reporting year Profit for transferred to retained earnings of previous years (49 164) - Dividends for - (54 098) - (54 098) Retained earnings for the reporting year Notes on pages 10 to 22 form an integral part of these financial statements. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Board Member of the Board Member of the Board 24 August 9

10 Interim statement for 6 months of (1) General information on the Company AS Siguldas ciltslietu un mākslīgās apsēklošanas stacija (hereinafter - the Company) was registered in the Register of Enterprises of the Republic of Latvia on 26 July 1991 and was reregistered in the Commercial Register of the Republic of Latvia on 19 June The Company s basic activities are agriculture and the types of business are as follows: - Production and sale of agricultural products high-quality breeding animals semen, - making of milk analyses, - evaluation of cow exterior, - artificial insemination of cows, - inspection of immune-genetic origin of cattle, - milk recording data processing, - animals breeding organization. (2) Significant accounting principles Underlying principles of preparation of the Financial Statements The Company s Financial Statements have been prepared according to the Law On Annual Reports of the Republic of Latvia and the obligatory applicable Latvian Accounting Standards. The Profit or Loss Account was prepared based on the period costs method. The Cash Flow Statement was prepared according to the direct method. Accounting principles used The items of the Financial Statements have been evaluated according to the following accounting principles: - It is assumed that the Company will be a going concern; - The same evaluation methods have been used, which were used in the previous year; - Evaluation was done with sufficient prudence: The Financial Statements include solely the profit gained until the balance sheet date, All expected risk amounts and losses have been taken into account, which occurred during the reporting year or in previous years, also if they were known during a certain period of time between the balance sheets date and the day of preparing the Financial Statements, All value decreasing and depreciation amounts have been taken into account irrespective whether the reporting year was closed with profit or loss; - reporting year related income and costs were recognized irrespective of the payment date and the date of receipt or issuance of invoice. Costs have been agreed with the income in the reporting period; - components of asset and liabilities items have been recognized separately; - the opening balance of the reporting year agrees with the closing balance of the previous year; - all items have been recognized, which materially influence assessment or decision-making process of the users of the annual report, insignificant items are merged and they are detailed in the Appendix; - operating transactions in the reporting year have been recognized in the Financial Statements by taking into account their economic substance and contents, rather than legal form. Financial instruments Fair value of financial assets and liabilities Fair value of financial assets and liabilities reflect the amount, for which it is possible to exchange assets or perform liabilities in a deal between well informed, interested and financially independent persons. If in the Company s management opinion, fair value of financial assets and liabilities materially differs from the value recognized in the balance sheet, then the fair value of these assets and liabilities is recognized in the. 10

11 Interim statement for 6 months of Financial risks management Credit risk The Company s management has developed credit policy, which is constantly controlled. Client evaluation is done for all customers above a fixed amount. The Company cooperates with clients who have proper credit assessment. Currency risk Based on the current structure of Company s financial assets and liabilities held in foreign currencies, the currency risk is not material. Reporting period The reporting period is 6 months from 1 January to 30 June. Revaluation of foreign currencies The Company s functional currency and the currency used in the Financial Statements is the Republic of Latvia national currency Lat (). All transactions in foreign currencies are translated to Lats according to the exchange rate set by the Central Bank of Latvia on the day of making the respective transaction. Monetary assets and liabilities, which are expressed in foreign currency, are translated to Lats to the exchange rate set by the Central Bank of Latvia on the last day of the reporting year USD Currency exchange rate differences arising from settlements in currencies or when recognizing assets and liabilities y using currency exchange rates, which differ from the initial currency exchange rates used for accounting of transactions, are recognized in the profit or loss account in net value. Recognition of income Income is recognized according to the conviction about the Company s possibility to gain economic benefit and in the amount, in which it is possible to state it, less value added tax and sales-related discounts. When recognizing income, also the following provisions are taken into account. Sale of goods Income is recognized when the Company has transferred to the purchaser major risks and indemnities related to the title of goods. Provision of services Income from services is recognized in the period when the services are provided. Penalty and delay charges Income from penalty and delay charges is recognized at the moment of their receipt. Interest Income is recognized according to the respective period of time. Long-term and short-term items Long-term items include amounts whose receipt, payments or write-off terms are due later after the end of the respective reporting year. Amounts, which are receivable, payable or written off during the year, are recognized in short-term items. 11

12 Interim statement for 6 months of Leasing transactions Financial leasing In cases when fixed assets are purchased on the conditions of financial leasing and the related risks and return are taken over, these fixed assets are recognized in the value, for which they could be purchased with immediate payment. Leasing interest payments and similar payments are included in the profit or loss account of that period when they occurred. Intangible assets and fixed assets In the balance sheet, all intangible assets and fixed assets are reflected at their purchase prices, less depreciation. Depreciation is calculated from the first date of the next month after their commissioning and finished on the first date of the subsequent month after it is excluded from fixed assets. Depreciation is calculated according to the straight line method and is written off during the useful life time of respective fixed assets by choosing the following annual depreciation rates as fixed by the management: Intangible assets: Licenses 5 years Fixed assets: Buildings and constructions Equipment and machinery Computer hardware and communication equipment Inventory and tools Other fixed assets 20 years 5, 6 and 7 years 5 years 3 and 5 years 2 and 3 years Balances of fixed assets have been counted in the annual count of fixed assets. Investment properties Investment properties land in possession of the stock company, which market value is expected to grow. Investment properties have been filed according to their purchase value. No later than on the end of the year of account the investments properties are being revalued according to their real market value considering any other activities related to particular property. Any changes in the market value of the investments properties are being shown in the profit and loss account. Biological assets Biological assets are assets, which are characterized by regeneration and changes in value as a result of growth. The Company in biological assets includes breeding animals bulls, which are kept for getting agricultural products for sale. Biological assets are recognized in the purchase value. Stock Stock is recognized in the lowest cost or net sales value. All stock is assessed by using the average weighted method. Net sales value is the sales price of stock fixed during normal Company s operations, less the stock completion and selling costs. In cases when the stock net selling value is lower than their cost price, provisions are made for these stocks for decrease of their value down to the net sales value. All direct costs, which are related to production of breeding animals - bull semen, during the year are booked in the profit or loss account and are adjusted at the end of the year when evaluating stocks according to the lowest sales value or cost price and including them in stocks as Ready-made goods and goods for sale. 12

13 Interim statement for 6 months of Trade receivables and other receivables Receivables are recognized in the balance sheet in the amortized value, less provisions for doubtful and bad debts. Provisions for doubtful and bad debts are made in cases when there is objective evidence to the fact that the Company will not be able to receive the debts in full value according to the initially fixed repayment dates. Provisions for doubtful and bad debts are the difference between the amortized purchase value of receivables and the recoverable value. The recoverable value of receivables is the current value of planned cash flow. Provisions Provisions are recognized when the Company has liabilities (legal or substantial) due to some past event and there is a probability that the performance of these liabilities will require outflow of economic resources from the Company, and the amount of liabilities can be fairly assessed. Corporate income tax Corporate income tax for the reporting period consists of the tax calculated for the reporting period and deferred tax. Corporate income tax is recognized in the profit or loss account. Calculated tax The tax calculated for the reporting period has been calculated in compliance with the requirements of the Law On Corporate Income Tax by fixing the taxable income and applying the statutory rate of 15%. Deferred tax Deferred corporate income tax is calculated for temporary time differences, which are caused due to differences in the value of assets and liabilities in the financial statements (book-keeping) and its value for tax purposes. The mentioned differences are mainly due to different fixed assets depreciation rates applied in tax and financial accounting, provisions made and losses transferred according to the Company s income tax declaration. Deferred tax is calculated by applying the statutory tax rate 15%. Subsidies Amounts, which are received as a state support for agricultural, i.e., for covering of expenses for maintaining highquality breed bulls, are included in the income of that reporting period when they are received. Use of assumptions When preparing the financial statements, the Company s management has to make calculations and assumptions, which impact recognition of assets and liabilities included in the financial statements as at the day of preparing the financial statements, as well as the income and expenses recognized in the specific reporting period. Management has made profit or loss assessment and considers that the financial statements reflect the true financial condition based on all currently available information. 13

14 Interim statement for 6 months of (3) Net sales Sales include income gained during the year from the Company s basic activities sales of products and provision of services without value added tax and less discounts. Type of operations Livestock sperm Milk laboratory services Treatment of supervisory data Inspection of cows Artificial insemination of livestock Immune-genetic laboratory services Other income Distribution of net sales according to the geographical markets: Latvia Earnings from agricultural activities represented in net sales: Earnings from agricultural activities (4) Changes in stock of ready-made goods and unfinished products Changes in sperm stock value Changes in stud bull herd value (5) Other operating income Revenue from exclusion of fixed assets State support for agricultural

15 Interim statement for 6 months of (6) Personnel costs Salaries for work State social insurance contributions Health insurance Other costs (7) Other operating expenses Insurance payments Business trip expenses Selling expenses Company s management and administrative expenses Other costs (8) Other interest income and similar income Income from securities Income from foreign currency exchange rate fluctuations Interest income Contractual penalties from clients Recovered doubtful and bad debts

16 Interim statement for 6 months of (9) Interest payments and similar costs Losses from foreign currency exchange rate fluctuations Contractual penalties and fines Employees leisure and other costs not connected with operating activities (10) Other taxes Real estate tax (11) Intangible assets Concessions, patents, licenses, trade marks and similar rights Total Concessions, patents, licenses, trade marks and similar rights Initial value Purchased Disposed Accrued depreciation Calculated depreciation Depreciation of excluded investments Total Book value as at Book value as at

17 Interim statement for 6 months of (12) Report on movement of fixed assets Land, buildings and constructions Technological equipment and machinery Other fixed assets Total Initial value Purchased Disposed - (15 209) (1 840) (17 049) Accrued depreciation Calculated depreciation Depreciation of excluded fixed assets - (13 434) (1 840) (15 274) Book value as at Book value as at As at 30 June, the cadastral value of real estate land and constructions - was As at 30 June, the cadastral value of real estate land and constructions - was Land, buildings and constructions Technological equipment and machinery Other fixed assets Total Initial value Purchased Disposed - (21 640) (2 619) (24 259) Accrued depreciation Calculated depreciation Depreciation of excluded fixed assets - (19 115) (2 619) (21 734) Book value as at Book value as at As at 30 June, the cadastral value of real estate land and constructions - was As at 30 June, the cadastral value of real estate land and constructions - was

18 Interim statement for 6 months of (13) Investment properties Land Total Land Total Book value as at Increase/decrease of value due to revaluation Book value as at Book value as at Increase/decrease of value due to revaluation Book value as at (14) Investments in capital of associated companies % from total share capital % from total share capital Ltd Animal Breeders Association of Latvia (SIA Latvijas šķirnes dzīvnieku audzētāju savienība ) Legal address: Republikas laukums 2, Rīga, LV-1010, Latvia (15) Other securities and investments Purchase value as at Book value as at Purchase value as at Book value as at (16) Ready-made products and goods for sale Bull semen Other goods for sale (17) Trade receivables Accounting value of trade receivables Provisions for doubtful trade receivables (5 977) (2 920) (8 505) (4 155)

19 Interim statement for 6 months of (18) Other receivables VAT for received goods and services Overpayment of taxes Other receivables (19) Prepaid expenses The item recognizes the costs made during the reporting year, but referring to the next reporting periods. Advertising costs Insurance Press subscription (20) Other securities and shareholding in capitals Number Market price Amount Number Market price Amount SEB Lats reserve fund Number Market price Amount Number Market price Amount SEB Lats reserve fund Money market fund shares have no guaranteed interest rate. In, the profitability was about 0.53 %. Exclusion of money market fund shares is carried out at the Company s request. 19

20 Interim statement for 6 months of (21) Cash in and foreign currencies according to the LCB exchange rate Break-down of cash according to currencies: Currency Currency Cash in hand Cash in bank Cash in bank Break-down of cash according to currencies: Currency Currency Cash in hand Cash in bank Cash in bank (22) Share capital The Company s shares are quoted on NASDAQ OMX Riga Stock Exchange s second listing. The Company s share capital consists of shareholders investments. The total number of shares is , the nominal value per share is 1 Lat. Ordinary common shares with voting rights Shares owned by the Board without voting rights shares or 99.8% of the share capital are bearer shares, which give equal rights to receive dividends, receipt of liquidation quota and voting rights in the Shareholders Meeting shares or 0.2% of the share capital, which are not included in the regulated market, are personnel registered shares, which may be obtained only by Members of the Board, and they give equal rights only to receipt of dividend and liquidation quota. There are no share alienation restrictions, nor the necessity to receive the Company s or other shareholders consent for alienation of shares. There are no restrictions on voting rights, nor any other similar restrictions. Profit per share Profit per one share is calculated by dividing the profit of the reporting period with the average weighted number of shares during the year. Profit of the reporting period Average weighted number of shares during the year

21 Interim statement for 6 months of (23) Provisions for deferred tax Temporary differences in fixed assets depreciation Provisions for vacations (16 908) (21 800) (24 058) (31 019) Total temporary differences Deferred tax provisions at the beginning of the period Increase or decrease Deferred tax provisions at the end of the period (24) Taxes and social insurance payments Tax type Balance as at Calculated in Paid in Balance as at Corporate income tax (7 040) - Value added tax (52 667) Social insurance contributions (46 082) Personal income tax (27 522) Real estate tax (1 111) - Nature resource tax (52) 32 Business risk duty (61) ( ) Including: Tax overpaid - - Tax due Tax type Balance as at Calculated in Paid in Balance as at Corporate income tax (10 017) - Value added tax (74 938) Social insurance contributions (65 569) Personal income tax (39 160) Real estate tax (1 581) - Nature resource tax (74) 46 Business risk duty (87) ( ) Including: Tax overpaid - - Tax due Tax overpaid declared in position Other receivables 21

22 Interim statement for 6 months of (25) Accrued liabilities Vacation reserve (26) Number of persons employed by the Company Average number of persons employed during the reporting year (27) Information on remuneration to Council, Board and Managements Members Council Members salaries for work, including state social insurance contributions Board Members salaries for work, including state social insurance contributions Total remuneration to management members There are no special regulations worked out, which would regulate election of Board Members, changes in the composition of the Board and amending of the Articles of Association. All Board Members have equal Company s representation rights. The Chairman of the Board represents the Company separately, but other Board Members can represent the Company only both together. There is no agreement signed between the Company and the Board Members, which provides any compensation. 22

23 Interim statement for 6 months of Report on Management Liability According to the information being at our disposal, the Interim Financial statement for six months of have been prepared according to the effective requirements of legislative enactments and provide a true and fair view about the joint stock company s Siguldas ciltslietu un mākslīgās apsēklošanas stacija assets, liabilities, financial condition and profit. Interim Financial statement for six months of have not been audited by Sworn Auditor. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Board Member of the Board, Head of Production and Marketing Department Member of the Board, Head of Financial and Accounting Department 24 August 23